Teh Banks!
03-05-2009, 09:42 AM
#2
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Economy/stock market will have to bottom out economy will reset and we will survive. Our economy has been needing to do this for a long time, banks got greedy and conducted faulty lending practices now we are using paper money that does not exist to bail them out further increasing our national deficit and lowering the value of our money. The bailouts were a temporary fix to jumpstart our economy but it looks like its not just the battery thats dead its a blown motor to put it in car speak so bailouts = Fail.
We will survive right now would be a great opportunity for anyone with liquid assets to invest in companys like GM and citigroup as long as they rebound and dont go under you will be all good. Example citi group was trading at 56.66 in december of 06 so if you buy a share at .99 and it goes back up to even $21 in the future you just made $20 on a $1 investment. Doesnt work for broke hoes like me but if you had 10,000 laying around you could make like 190,000 on a turn around like that.
This economy will reset and it will probably be better when it does because im sure there will be far more regulations on lending in the future. What does that mean for the bottom line. Lending will be harder but it will be like it was historically and keep housing down. Houses will loose value and probably never come back but you will be able to buy if you are in a position to do so.
This is the fallout from the .com boom that drove all the houses in the bay up to way more than they should have been and now things are going to balance back out. I feel for the people loosing alot of money on property value I am one of them. I own a 750k home that I have been in for some time that is now only worth 650. I fortunately only owe 600k now but will probably never get it but its for the greater good.Call me a communist if you want to but our economy has been broken for a long time we have just been pulling the wool over our eyes and being greedy while our government and the banks pulled an Enron on a national level.
We will survive right now would be a great opportunity for anyone with liquid assets to invest in companys like GM and citigroup as long as they rebound and dont go under you will be all good. Example citi group was trading at 56.66 in december of 06 so if you buy a share at .99 and it goes back up to even $21 in the future you just made $20 on a $1 investment. Doesnt work for broke hoes like me but if you had 10,000 laying around you could make like 190,000 on a turn around like that.
This economy will reset and it will probably be better when it does because im sure there will be far more regulations on lending in the future. What does that mean for the bottom line. Lending will be harder but it will be like it was historically and keep housing down. Houses will loose value and probably never come back but you will be able to buy if you are in a position to do so.
This is the fallout from the .com boom that drove all the houses in the bay up to way more than they should have been and now things are going to balance back out. I feel for the people loosing alot of money on property value I am one of them. I own a 750k home that I have been in for some time that is now only worth 650. I fortunately only owe 600k now but will probably never get it but its for the greater good.Call me a communist if you want to but our economy has been broken for a long time we have just been pulling the wool over our eyes and being greedy while our government and the banks pulled an Enron on a national level.
Last edited by Shayhan27; 03-05-2009 at 10:10 AM.
03-05-2009, 09:46 AM
#3
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Well thats how i've sort of felt about this economy. It is like someone hit the reset button.
However its just sad to see another big bank below $1, Hopefully its not another Wamu situation where 99 cents went to pennies in like one hour.. The run on the bank was just insane!
However its just sad to see another big bank below $1, Hopefully its not another Wamu situation where 99 cents went to pennies in like one hour.. The run on the bank was just insane!
03-05-2009, 10:02 AM
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Some more food for thought on why I could give a **** about banks. Here was the thinking on interest only loans. Like mine is indefinate so what that means is my Morgage is roughly 4,200 per month. That pays prinipal and inerest however I have a lower option which still satisfys my payment of 3,600 per month but that pays interest only so If I only pay that it just pays the interest and this could happen forever. Banks still makng money so what do they care.
Just to let everyone know I do not pay all of that I have a business partner who pays half and he just uses the house as a write off so no im not a total baller.
My point if anyone has read The Jungle by Upton Sinclair you will see the trend where the meat packers "sold" houses to these familys that could not afford them and then they would kick them out when they could not pay and resell them to another family so the building costs were covered by people who were techniclly "renting" them. I hope im not the only one who sees the similaritys. Interest only loans sold houses to people on "stated" income so not verified MOre ofen than not they knew these people could not afford the principal and interest payment but they sold them anyway and 5 yrs later boom this is where we are.
Guess who still ownes your foreclosed home? The bank. So now you just paid for a house for 5 years the bank got that money now you are on the street and they own your home to sell it agian. GREED at its finest and here we the victims are paying our tax dollars for years to the financial institutions who are not all to blame but at least partially. Sorry for my rants I just feel that alot of people are not understanding really what it meant when we bailed out these companys.
Just to let everyone know I do not pay all of that I have a business partner who pays half and he just uses the house as a write off so no im not a total baller.
My point if anyone has read The Jungle by Upton Sinclair you will see the trend where the meat packers "sold" houses to these familys that could not afford them and then they would kick them out when they could not pay and resell them to another family so the building costs were covered by people who were techniclly "renting" them. I hope im not the only one who sees the similaritys. Interest only loans sold houses to people on "stated" income so not verified MOre ofen than not they knew these people could not afford the principal and interest payment but they sold them anyway and 5 yrs later boom this is where we are.
Guess who still ownes your foreclosed home? The bank. So now you just paid for a house for 5 years the bank got that money now you are on the street and they own your home to sell it agian. GREED at its finest and here we the victims are paying our tax dollars for years to the financial institutions who are not all to blame but at least partially. Sorry for my rants I just feel that alot of people are not understanding really what it meant when we bailed out these companys.
Last edited by Shayhan27; 03-05-2009 at 10:10 AM.
03-05-2009, 10:06 AM
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I am hoping not but I have a crapload of guns and ammo just in case. I decided yesterday if it all goes to crap I will just become like a somali warloard start my own army and take care of my people. Yea we will have to rape and pillage a little but that shouldnt bother you as long as your on my team. Everyone will have to pay a little in food but it will all be shared. Kinda like robin hood, and the protection I will provide will be second to none. It'll be a harsh world so the rule will have to be equally harsh.
FOR THE RECORD the above statement is meant to be a joke and in no way reflects my actual plans or personality. I did really think about being a warloard though.
FOR THE RECORD the above statement is meant to be a joke and in no way reflects my actual plans or personality. I did really think about being a warloard though.
03-05-2009, 10:17 AM
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Well, according to Obama, ahhh, now, ahhh, might be a good time, ahhh, to buy up some stocks, you see. (Pause). Its like the political polls, ahhh, you can't worry too much about it, ahhh. So, buy up Citi, watch it become nationalized, and then watch your investment go to 10 cents on the dollar in no time.
03-05-2009, 10:29 AM
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Well, according to Obama, ahhh, now, ahhh, might be a good time, ahhh, to buy up some stocks, you see. (Pause). Its like the political polls, ahhh, you can't worry too much about it, ahhh. So, buy up Citi, watch it become nationalized, and then watch your investment go to 10 cents on the dollar in no time.
03-05-2009, 10:36 AM
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Really, what about GM and the other auto makers. Despite being "bailed out" their future looks bleak. My only point is that listening to Obama try to give investment advice was hilarious. How is it that someone with such little knowledge of anything relevant has been given the power to make these types of decisions and recommendation? It is beyond me.
